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CIRCULAR

Guiding the implementation of a number of provisions of the Regulation on cultural activities and commercial provision of cultural services, issued together with the Government's Decree no. 11/2006/ND-CP, regarding discotheque, karaoke and video game business

In furtherance of the Government's Decree No. 11/2006/ND-CP of January 18, 2006, promulgating the Regulation on public cultural activities and commercial provision of cultural services, the Ministry of Culture and Information has consulted the Ministry of Planning and Investment (in Official Letter No. 6049/BKH-LDVX of August 16, 2006) and hereby issues this Circular to guide the implementation of a number of provisions on discotheque, karaoke and video game business as follows:

I. General provisions

1. Organizations and individuals dealing in discotheque, karaoke and video game business (hereinafter referred to as businessmen) shall have to abide by the provisions of the November 29, 2005 Enterprise Law, meet all conditions prescribed in the Regulation issued together with Decree No. 11/2006/ND-CP (hereinafter referred to as the Regulation) and, when operating, observe the provisions of the Regulation.

2. Business permits prescribed in the Regulation shall replace professional practice permits prescribed in the Regulation issued together with the Government's Decree No. 87/CP of December 12, 1995. As from the effective date of Decree No. 11/2006/ND-CP, licensing agencies shall use the forms of discotheque business permit and karaoke business permit issued together with this Circular (not printed herein).

3. State administrative agencies prescribed in Clause 1, Article 32, and Clause 1, Article 38 of the Regulation include state management agencies, political organizations and socio-political organizations at various levels, police and army quarters; international organizations, embassies and consulates of foreign countries.

4. Schools prescribed in Clause 1, Article 32, and Clause 1, Article 38 of the Regulation are crèches, kindergartens, primary schools, lower secondary schools and upper secondary schools within the national education system.

5. Video game business prescribed in the Regulation does not cover prize-winning video games for foreigners prescribed in the Prime Minister's Decision No. 32/2003/QD-TTg of February 27, 2003.

II. Specific provisions

1. According to the provisions of Clause 3, Article 66, of the June 14, 2005 Tourism Law, tourist accommodation establishments which have been classified to be of a star or high-grade rating, when dealing in discotheque, karaoke and video game business, shall not have to apply for business permits but must meet all conditions prescribed in Article 32 of the Regulation, for discotheque business or Clauses 1, 2, 3, 4 and 6, Article 38 of the Regulation, for karaoke business; the conditions for karaoke business prescribed in Clause 5, Article 38 of the Regulation shall comply with Clause 3, Article 15 of the Enterprise Law.

2. Culture and arts majors in which persons directly managing dancing halls shall have an intermediate or higher degree as prescribed in Clause 2, Article 32 of the Regulation include the majors in performing arts, fine arts, cinematography, mass culture and cultural management.

3. The door of a karaoke parlor prescribed in Clause 3, Article 38 of the Regulation must be made of transparent glass; the doorframe, if any, must have no more than two rails and three stiles and its area shall not exceed 15% of that of the door.

4. The distance of at least 200 m prescribed in Clause 1, Article 32, and Clause 1, Article 38 of the Regulation shall be that from the door of a dancing hall or karaoke parlor to the gate of a nearby school, hospital, religious and belief establishment, cultural-historical relics or state administrative agency. This provision shall apply only to cases where schools, hospitals, religious and belief establishments, cultural- historical relics or state administrative agencies already exist before the owners of business establishments register their business or apply for business permits.

5. The distance of at least 200 m prescribed at Point a, Clause 1, Article 43 of the Regulation shall be that from a video game shop to the gate of a nearby primary school, lower secondary school or upper secondary school.

6. The provision of Clause 5, Article 38 of the Regulation which requires written agreement of adjacent households for karaoke parlors located in residential quarters shall be understood and applied as follows:

a/ Adjacent households are families living in houses adjoining the wall of a karaoke parlor or house in adjacent land lots the distance from the wall of which to that of the karaoke parlor is less than 5 m.

b/ Adjacent households shall have the right to agree or disagree on the opening of a karaoke parlor if they have been living there before the businessman applies for a business permit.

Where businessmen have been granted business permits before adjacent households build their houses or move to such houses, such households shall not have the right prescribed in Clause 5, Article 38 of the Regulation.

c/ Written agreements of the adjacent households must be certified by the People's Committee of the commune, ward or township where such households live and included in the dossiers of application for permits submitted by the applicants. Such written agreements shall be valid for the whole business duration stated in the permits.

d/ Where adjacent households neither make written agreement nor express opposition, they shall be considered having no comment. In this case, a document certifying that the adjacent household has no comment shall be required, which indicates that such household does not exercise the right prescribed in Clause 5, Article 38 of the Regulation.

7. All cases of extension, renewal or grant of discotheque and karaoke business permits must satisfy the conditions prescribed in the Regulation and the guidance in this Circular.

8. Dossiers and procedures for the application for karaoke and discotheque business permits:

Applicants for discotheque business permits shall submit dossiers at provincial/municipal Culture and Information Services; applicants for karaoke business permits shall submit dossiers at provincial/municipal Culture and Information Services or district-level business licensing agencies authorized by provincial/municipal People's Committees.

An dossier of application comprises:

- An application for a business permit, made according to a set form.

- The contract between the applicant and the person directly managing the dancing hall, enclosed with the latter's legally valid copy of diploma (for discotheque business).

- Written agreements of adjacent households or the document certifying that the adjacent households have no comment (for karaoke business).

Business licensing agencies shall have to inspect the actual conditions of the applicants for business permits and refer to the planning before granting permits.

9. The following subjects shall only be allowed to continue their operation till the expiration of the duration stated in their granted business permits (or professional practice permits):

a/ Clubs which have been granted discotheque practice permits under the Government's Decree No. 36/CP of June 19, 1996.

b/ Karaoke parlors of between 14 m2 and 20 m2 each, which have been granted professional practice permits under the Government's Decree No. 36/CP of June 19, 1996.

c/ Discotheques and karaoke parlors which have been granted business permits before the effective date of the Government's Decree No. 11/2006/ND-CP and are located less than 200 m away from a school, hospital, religious and belief establishment, historical-cultural relic or state administrative agency or at variance with the planning on discotheques and karaoke parlors approved by the provincial/municipal People's Committee under the provisions of Clause 4, Article 32, Clause 6, Article 38 of the Regulation and Points 2 and 4 of the Prime Minister's Directive No. 17/2005/CT-TTg of May 25, 2005.

10. The following subjects shall have to stop their business activities:

a/ From the effect date of this Circular:

Karaoke parlors of between 14 m2 and 20 m2 each in tourist accommodation establishments of one-star or higher rating, which have been granted business registration certificates before the effective date of Decree No. 11/2006/ND-CP.

b/ From the effective date of the decisions approving the plannings on discotheques and karaoke parlors, issued by provincial/municipal People's Committees: Discotheques and karaoke parlors in tourist accommodation establishments of one-star or higher rating, which have been granted business registration certificates before the effective date of Decree No. 11/2006/ND-CP but are at variance with the plannings approved under the provisions of Clause 4, Article 32, Clause 6, Article 38 of the Regulation and Points 2 and 4 of Directive No. 17/2005/CT-TTg of May 25, 2005.

11. For foreign-invested enterprises which have been licensed to do discotheque, karaoke and video game business, the discotheque, karaoke and video game business duration and location shall comply with the granted licenses.

III. Organization of implementation

1. This Circular shall take effect 15 days after its publication in "CONG BAO."

2. Issued together with this Circular are the forms of application for discotheque business permit; discotheque business permit; application for karaoke business permit; and karaoke business permit (not printed herein).

3. Businessmen who fail to satisfy the business conditions prescribed in the Regulation shall have to stop their business activities; those who commit acts of violation shall be administratively sanctioned according to the provisions of the Government's Decree No. 56/2006/ND-CP of June 6, 2006; where business registration certificates or business permits have already been granted, but businessmen fail to satisfy the business conditions, such certificates or permits shall be withdrawn according to the provisions of law.

4. Responsibilities of the Ministry of Culture and Information, the Ministry of Planning and Investment and provincial/municipal People's Committees:

a/ The Ministry of Culture and Information shall have to direct business licensing agencies to grant permits in strict accordance with the provisions of the Regulation and the guidance in this Circular; direct the Ministry's Inspectorate and provincial/municipal Culture and Information Services to organize or coordinate with concerned agencies in organizing examination or inspection in order to detect and handle violations in the grant of permits and in karaoke, discotheque and video game activities according to their competence.

b/ The Ministry of Planning and Investment shall coordinate with ministries, branches and provincial-level People's Committees in guiding business licensing agencies to grant certificates of registration for karaoke, discotheque and video game business in accordance with the provisions of the Enterprise Law and guiding documents.

c/ Provincial/municipal People's Committees shall have to guide functional agencies and district-level People's Committees in granting business registration certificates and business permits; direct, examine, inspect and handle violations in karaoke, discotheque and video game business activities according to their competence.

5. In the course of implementation, localities should report any arising problems to the Ministry of Culture and Information and the Ministry of Planning and Investment for study and settlement.